Submit Solution

Your email address will not be published. Required fields are marked *

More Questions on This Topic :

Question 1. Which of the following is correct in case of interest collected by bank?
  1.    Added to balance in cash book
  2.    Subtracted from balance in cash book
  3.    Added to bank balance
  4.    None of these
Answer: Option A
: A

Interest collected by bank is added to the balance in the cash book.

Question 2. Which of the following is not true with regards to dishonor of a cheque?
  1.    Dishonored cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque
  2.    Dishonored cheque is a cheque which is presented for payment and the drawer has sufficient fund in his or her account to cover the cheque
  3.    The dishonored cheque is shown in the debit column of the bank statement
  4.    The customer is still owing us the money as his or her cheque has been dishonored
Answer: Option B
: B

Dishonored cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque.

Question 3. From the following particulars, find balance as per cash book as at March 31, 2018.

(i) Debit balance as per pass book  Rs 8,250

(ii) Cheques issued but not presented Rs 2,750

(iii) Direct deposit to bank by customers Rs.2,200

(iv) Dividend received directly into the bank account Rs 300
  1.    Rs.14,500 credit balance
  2.    Rs.13,500 debit balance
  3.    Rs.13,500 credit balance
  4.    Rs.14,500 debit balance
Answer: Option C
: C

Particulars Amount
Debit balance as per pass book(Overdraft) 8,250
Add:Cheques issued but not presented 2,750
Add: Direct deposits by customers 2,200
Add: Dividend received directly 300
Credit balance as per cash book(Overdraft) 13,500